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The Overlooked Management Costs of eCommerce Fulfilment

Posted on April 11, 2022
by Liam Brennan

You’ll be surprised how much money you’ll save with a 3PL provider

We’re all going to feel the effect of rising costs in the coming months, and eCommerce businesses will be no exception. Creating and distributing online orders is already a costly undertaking, which is bound to increase as prices rise.

If you’re managing your eCommerce sales internally, and with no third-party support, your energy bills will be significant. With the help of a 3PL provider, you can greatly reduce such charges; including the costs that come with packing and shipping orders. Managing these fundamental aspects of your business is time-consuming, and can be damaging for your reputation when done incorrectly.

At Huboo, we can reduce your bills despite rising prices, via the expert fulfilment methods we incorporate into our supply chain solution.

Packaging Costs

Packaging is a largely overlooked element of eCommerce sales. The material cost of all that much-needed product protection really does rack up!

Fulfilment companies that specialise in shipping can identify all the best practices for arranging deliveries, and will also bulk-buy the correct, most effective packaging materials. This can lead to greatly reduced costs for businesses that would otherwise be paying the same for these materials independently.

We can’t overstate the importance of using product-specific packaging. No two items are the same and each require different specifications, from both a cost-effective viewpoint, and for legal requirements.

3PL providers have access to the best available resources and will know how to make the presentation look professional, as well as being practical for shipping.

Posting Orders

Processing orders is an unnecessary headache for online stores. An expert 3PL business can easily manage shipments to any description required, and can reach customers all over the world.

Huboo’s 3PL warehouses are based in regions known as transport hubs. At these hubs, deliveries are made several times a day, all intended for the complete convenience of retailers looking to sell far and wide.

Not only does such strategic location targeting mean that online sellers can offer customers later cut-off times for order despatch, but it also maintains a steady flow of fulfilment around the clock. This reduces the energy costs that result from constant machinery use, with high energy consumption a common fulfilment issue for independent retailers, especially during peak business hours.

The Importance of Returns

Customer returns, also known as reverse logistics, is a process that can end up costing a business a large sum of money if it’s not a streamlined, convenient process. Unexpected costs will be accrued when resources for returns are diverted away from other areas of a business’s function, not to mention the cost needed for refunding customers for receiving damaged goods.

Whether it’s the expense of reselling a product, or dealing with faulty and damaged goods, customer returns are an inevitable occurrence that end up costing a business greatly. eCommerce fashion retailers particularly suffer from negative return processes.

3PL providers can deal with all these issues via an effective, strategic process that’ll save a business money, time and effort. Huboo reduces return costs thanks to our advanced eCommerce-focused software that monitors every step of the fulfilment process, including an easy tracking system which customers use to stay fully updated with their returns.

How Huboo can help

You can manage all these criteria without a fulfilment provider, but unless you’re willing to dedicate a significant amount of your resources and time to planning and undertaking all required aspects of fulfilment, from picking, packing and shipping orders, to managing waste and recycling processes, you’ll really need the help of an expert.

Rather than outsourcing this to various suppliers, it makes sense to work closely with one provider that’ll assist you with all these internal processes, using a structured system that’s right for your business.

As the fastest growing 3PL provider in the UK, Huboo is the ideal eCommerce support for retail businesses.

Get a quote now to see how Huboo can simplify your processes, and ultimately increase your sales.